Over 40% of altcoins near lows - worse than FTX crash

The altcoin market is experiencing its deepest crisis in recent years. According to CryptoQuant analyst Darkfost, over 40% of all altcoins are trading near their all-time lows, surpassing levels seen even during the FTX collapse in November 2022. Total altcoin market capitalization has shrunk by $209 billion in just 13 months.

Scale of the crash: $209 billion vanished

Since October 2025, when Bitcoin reached its all-time high of $126,000, the altcoin market has been in freefall. According to CryptoQuant, total altcoin market capitalization plunged from $1.19 trillion to approximately $719 billion - a 39.5% loss in value in less than a year and a half.

The hardest-hit major projects show catastrophic losses from their peak values:

• Cardano (ADA): trading 92% below its all-time high - the deepest drop among top-10 cryptocurrencies
• Solana (SOL): down 72% from peak values, despite an active developer space
• XRP: lost 65% from its maximum, though it remains the only major altcoin with positive investment flows

At the same time, Bitcoin holds around $67,000, while the Fear and Greed Index has plunged to 8 - an "extreme fear" zone not seen since the FTX collapse era.

Why altcoins are under unprecedented pressure

Analyst Darkfost noted that altcoins "have never been under such pressure during this cycle." Several systemic factors are simultaneously weighing on the segment, creating a perfect storm for the alternative cryptocurrency market.

• Massive token oversupply: over 47 million tokens have been created across Solana, Base, and BNB Smart Chain blockchains. Liquidity is diluted across millions of projects, the vast majority of which have no real value or utility.
• Macroeconomic uncertainty: geopolitical tensions around the Strait of Hormuz and global trade risks are pressuring risk assets worldwide. Investors are massively exiting volatile positions.
• Capital concentration in Bitcoin: institutional investors are focused exclusively on Bitcoin ETFs, completely ignoring the altcoin sector. This creates a liquidity "siphoning effect" from smaller assets.
• Retail investor disillusionment: after the wave of meme tokens and failed launches, trust in new projects has fallen to a minimum. Investors are unwilling to risk capital on unproven tokens.

Comparison with previous crises

The current situation surpasses all previous crisis periods in terms of the percentage of altcoins near their lows. During the FTX crash in 2022, only 30% of altcoins traded near minimums, while the bear market peak reached 38%. Today, it has exceeded the 40% mark for the first time and continues to rise, revealing an unprecedented level of capitulation in the segment.

Massive outflows from investment products

Over the past week, digital investment products recorded a combined $414 million in outflows. Ethereum took the hardest hit with a net outflow of $222 million, reflecting deep investor disillusionment with the second-largest cryptocurrency by market cap.

Those looking to sell Ethereum for hryvnia should account for increased volatility and heightened selling pressure because of mass liquidations. Spreads on exchange platforms may be wider than usual.

The sole exception was XRP, which attracted $15.8 million in net inflows over the week. Investors continue to bet on this asset despite prevailing market pessimism, likely in anticipation of regulatory clarity following a series of positive SEC decisions.

Is altseason coming in 2026?

Some analysts believe the current capitulation could set the stage for a market reversal. Historically, extreme fear levels have coincided with market bottom formation, and a Fear & Greed Index reading of 8 may signal that a turning point is approaching.

However, structural issues, primarily token oversupply and liquidity dilution, may make the recovery selective. Even if the market turns around, only projects with real utility and active communities will benefit, while the majority of 47 million tokens will remain near zero permanently.

The altcoin market is in its most difficult position of the entire current cycle. Investors should carefully assess risks and focus on radically strong projects, avoiding tokens without a clear value proposition.